Activity-Based Costing Assigns Cost to Cost Objects by First Tracing

question 122

Multiple Choice

Activity-based costing assigns cost to cost objects by first tracing costs to

• A)products and then tracing costs to cost objects.
• B)departments and then tracing costs to products.
• C)activities and then tracing costs to cost objects.
• D)customers and then tracing costs to products.

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Definitions:

Semiannual Payments

Payments that are made twice a year, often encountered in the context of loan repayments or bond interest payments.

Compounded Semiannually

Compounded semiannually refers to the process of applying interest to an initial amount and the accumulated interest over two periods within a year.

Future Value

The value of an investment at a specific date in the future, considering the interest rate or rate of return it earns over time.

Number of Periods

In finance, it refers to the total duration, measured in time units (such as years or months), over which payments or calculations are spread.